The Characteristics of the English Land Improvement Companies in the Middle of the 19th Century

Abstract

With the Repeal of Corn Laws in 1846, British agricultural policy turned to land improvement policy. Of those sums of money invested in land improvements under a series of Land Improvement Acts, the one invested under the Land Improvement Companies Acts took the largest share. In this article, I have tried to make clear the characteristics of the English Land Improvement Companies from the view point of money circulation, and in so doing I have especially paid attention to "transferring of the rent-charges in aggregate amounts". From analyzing Minutes of Evidence in Parliamentary Committees, two interesting facts have been found. First, the historical change of the Land Improvement Companies was one from "executive company" to "financial company". The latter did not do any improvement works, but only lent money to landowners. Second, Land Improvement Companies obtained for the money lent a security which was always negotiable in the money market at a price. Selling the rent-charges themselves, they got their money in large blocks from 16 or 20 insurance companies in London. The English Land Improvement Companies were, therefore, agents of the insurance companies from the standpoint of money circulation; that is, they simply acted as mediums between the floating capital in the money market on the one hand, and the landed interest who required money to invest in improvements on the other.